New stimulus plan would leave out more than 600,000 Washington residents


BY DAVID LIGHTMAN
MARCH 05, 2021 

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WASHINGTON

More than 600,000 Washington state residents would get lower federal economic stimulus payments, or none at all, under a new Senate plan being debated this week, an economic research firm’s analysis found.

President Joe Biden has agreed to the plan, which has been sought by moderate Democrats. The payments are lower than those in legislation passed by the House.

An estimated 6.1 million Washington residents could get some stimulus money under the Senate proposal, according to data from the Institute on Taxation and Economic Policy. The House plan would benefit 6.7 million state residents.

Qualifying taxpayers will still get $1,400 per person under the Senate version.

Qualified individuals with incomes of $75,000 or less and joint filers with incomes of $150,000 or less will get the full amount, just as they did in the House bill.

The big change is that in the new version, the payment will then be reduced until those earning $80,000 if filing individually and $160,000 if filing jointly will not get any money.

The House phaseout had gone up to $100,000 for individuals and $200,000 for joint filers.

Taxpayers earning below the income caps would get the same payments they’d be due under the House version.

The biggest change from the House bill would be at higher income levels, the Washington, D.C.-based firm said. Washington state filers and their families with incomes of $135,700 to $290,600 could see their payment drop from an average of $1,940 in the House plan to an average of $1,340 in the new agreement.

 These are estimated average benefits for other Washington filers and their families under the plan:

 ▪ Lowest 20% income group, with incomes of less than $28,800, would receive $2,170. No change from previous proposal.

 ▪ Second 20% income group, with incomes ranging from $28,800 to $53,200, would receive $2,380. No change from previous proposal.

 ▪ Third 20% income group, with incomes ranging from $53,200 to $84,400 would receive $2,810 instead of the House’s $2,860. 

 ▪ Fourth 20% income group, with incomes ranging from $84,400 to $135,700, would receive $2,740, down from $2,840 in the House plan.

 The state’s economy would also see less money. The House plan could boost economic activity by an estimated $8.8 billion, while the new plan would provide about $8.4 billion, according to the analysis.

The Senate has begun considering the measure, part of a $1.9 trillion COVID-19 relief act, with final votes anticipated later in the week. The bill would then need approval again by the House.

Biden is aiming to sign legislation by mid-March

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Another round of federal stimulus payments could be on the way, but weathier taxpayers won’t get as much in the Senate plan as they would in the House bill. ZACH GIBSON TNS

DAVID LIGHTMAN
is McClatchy’s chief congressional correspondent. He’s been writing, editing and teaching for 49 years, with stops in Hagerstown, Riverside, Calif., Annapolis, Baltimore and since 1981, Washington.